Indy Lands In 1st Place For 1st Time Home Buyers
Posted in Hows The Market, Indianapolis Makes Another Top Ten, Indy Makes Top 10 List, Market News, Uncategorized
In 2015 I shared that The 1st question for most home buyers…
How MUCH home can I afford… and at that time Indy Ranked 1st In Home Value For Dollar. Now Zillow’s looked at this concept, especially from the eyes of 1st time home buyers, and Indy Lands In 1st Place For 1st Time Home Buyers! Zillows ranking is based on considering:
- Median home values. Lower home values = buyers need less cash for a down payment
- Affordability. Places where mortgage payments = smaller share of income & rentals are more unaffordable.
- Inventory. More homes = it’s easier to find the perfect fit.
- Cash buyer competition. Fewer all-cash offers = less competition.
Per Zillow’s “Math” the median home value in Indianapolis is $130,200, & buyers can expect to spend 11% of their monthly income on a mortgage payment compared with Renters in Indy who can expect to put 26 percent of their monthly income toward a rental payment. This is consistent with what we have seen in Indy for a while which is that it’s cheaper to buy than it is to lease!
Note: The Zillow “Math” may not reflect the most accurate picture of the average home prices, since Zillow’s math is not based on actual home sales prices but rather tax records and agent reporting. Still, since this same index was used across the board in all of the calculations it’s reasonable to believe Indy is at least in the top 10 best places for home value for 1st time buyers if Indy is not in fact the #1 slot.